Local business platform Yelp (NYSE:YELP) will be announcing earnings results this Thursday after the bell. Here’s what you need to know.
Yelp beat analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $358.5 million, up 7.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year revenue guidance meeting analysts’ expectations.
Is Yelp a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Yelp’s revenue to grow 2.3% year on year to $365.4 million, slowing from the 5.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.88 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Yelp has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Yelp’s peers in the social networking segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Reddit delivered year-on-year revenue growth of 77.7%, beating analysts’ expectations by 17.2%, and Meta reported revenues up 21.6%, topping estimates by 6%. Reddit traded up 16.9% following the results while Meta was also up 11.2%.
Read our full analysis of Reddit’s results here and Meta’s results here.
Investors in the social networking segment have had steady hands going into earnings, with share prices flat over the last month. Yelp is down 3% during the same time and is heading into earnings with an average analyst price target of $38.63 (compared to the current share price of $33.54).
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